THIS DOCUMENT WILL HELP YOU PREPARE FOR YOUR EXAM FOR OCT2021, IT HAS SUMMARISED NOTES THAT IS SIMPLIFIED TO ENSURE A PASS .ALL CHAPTERS ARE COVERED IN THE STUDY GUIDE AND TEXTBOOK
PREVIEW OF QUESTION 1
1. 4 Reference: Prescribed book PG 33
The four factors that affect price elasticity of demand are (1) availability of substitutes, (2) if the
good is a luxury or a necessity, (3) the proportion of income spent on the good, and (4) how much
time has elapsed since the time the price changed. If income elasticity is positive, the good is normal
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